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Thursday, December 13, 2012

Gambia government to start giving development loan to civil servants in 2013

Civil servants in The Gambia now have
all the reasons to smile as the government has budgeted D25 million to be given
out as development loan to civil servants starting from January 2013.

The Civil Service Loan Scheme will help
civil servants to supplement their meagre salaries and empower themselves
economically.

Hon. Kolley

However, the Minister of Finance and
Economic Affairs, who disclosed the scheme, has said the loan will only be
provided to qualified civil servants, though he is yet to publicly establish
the criteria that will be used to know who is qualified.

He has not also said whether the loan
will be interest-free or not.

Finance Minister Abdou Kolley disclosed
this escape-poverty loan scheme on 3 December 2012 at the National Assembly in
Banjul while presenting the 2013 Annual
Estimates of Revenue and Expenditure of the Government of The Gambia for the
fiscal year January to December 2013.

However, some people have doubted the
scheme’s sustainability and also raised fear that it might be politicised.

Nevertheless, if properly done, the plan
could work as a deterrent to brain drain from the civil service that has for a
long time seen government employees seek greener pastures in the private sector
or abroad.

Revenue projected to increase by 13% in
2013

The
total revenue and grants of The Gambia government is projected to rise by 13.1
per cent in 2013 to D6,528.2 million, the Finance Minister told the National
Assembly Members.

“This
is principally due to the 18.4 per cent rise in tax revenue,” he said.

The
drivers of this increase in revenue will be income tax, both personal and
company, as well as import sales tax on non-oil items and collection from the
replacement for sales tax - the Value Added Tax - to be effected in January
2013.

The
Finance Minister said these forecasts assume Gambia Revenue Authority will
continue to make improvements in compliance levels.

He
noted that non-tax revenue is expected to rise by
4.8% to D598.7 million. Grants are expected to almost double the 2012 levels to
stand at D2.2 billion.

“Within
a weak global economic environment, revenue projections for 2013 have been
cautious,” he said.

On
the other side, the Finance Minister said total expenditure and net-lending is
projected to rise from D6,719.3 million in 2012 to D7,398.9 million in 2013, an
increase of 10.1 per cent.

He
said personnel expenditures are projected to increase by 8.6 per cent to stand
at D1,861.7 million.

He
said Gross Budget Balance is projected as a deficit of D870.7 million down from
D951.4 million in 2012.

In
terms of financing this deficit, Hon. Kolley said net domestic borrowing is
projected to be limited to D340 million in 2013, around 1 per cent of GDP.

Reducing
net domestic borrowing is a critical step on the path to eliminating net domestic
borrowing and putting the national budget on a sustainable footing.

He
confirmed that interest payments currently consume around 22 per cent of
government revenues.

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The Publisher of this blog - Lamin Jahateh - is a professional journalist, with many years experience in journalism. Mr. Jahateh attended both national and international trainings on journalism. He is an executive member of many professional organisations, including Network of Journalists Against Money Laundering and Terrorist Financing in West Africa, Freedom House - The Gambia Chapter, Young Journalist Association of the Gambia, etc